Advance Accounting Theory Essay Example | Topics and Well Written Essays - 3500 words

Advance Accounting Theory - Essay Example he traditional budgeting is the performance budgeting where the budgeting is done on the basis of the evaluation of the performance at the end of the financial year which can affect the preparation of budget since the preparation of budget at the end of the year can result in the deficiencies since under traditional budgeting the budget is prepared on the basis of the historical cost and on the basis of the past data and information and traditional budgeting is unfavourable for establishing cost and benefit relationship since the process of traditional budgeting is very complex in nature. 15 The concept of beyond budgeting have been introduced in order to overcome the deficiencies of the traditional budgeting which explains that beyond budgeting is considered as the most appropriate method of budgeting which includes responsiveness, flexibility and coordination. The concept of beyond budgeting has been introduced in order to abandon the concept of traditional budgeting since the beyond budgeting will focus on both financial as well as on non financial measures. This process of beyond budgeting is required to focus and establish standards or benchmarks and identify its competitors rather than framing or establishing its internal targets. The concept of beyond budgeting has become popular in the recent years among the various multinational companies for example a Scandinavian bank has adopted the concept of beyond budgeting which has facilitated the bank to undergo cultural change from establishing of budgets to setting of targets and the improvement in the performance th at has resulted in the cutting down of cost. Beyond budgeting has facilitated each unit to have different and separate profit centre. Therefore beyond budgeting is considered as an important budgeting that will overcome the limitations and the disadvantages of the traditional budgeting (Hope and Fraser, 2003). 16 In the light of recent trends, companies voluntarily furnish their social activities

Environmental audit Essay Example | Topics and Well Written Essays - 1250 words

Environmental audit - Essay Example DISCUSSION Anything that impinges on the firm can be included in the environment. The environment is not stable; in fact, it is increasingly turbulent due to the era of change and uncertainty in which we live. Changes are happening faster and faster, requiring continual response on the part of businesses. Thereby, it is becoming increasingly imperative for companies to carry out feasibility studies and environmental audits to assess the nature of the new market and plan the strategies accordingly. Tesco is one of the largest food retailers on the globe. It operates approximately 2318 stores and its employer base is over 326,000 people. The largest market of Tesco is UK where it operates under four banners including Extra, Superstore, Metro and Express. Tesco spans itself over almost 40,000 food products along with clothing and other non-food lines. Moreover, the company's self owned products which make 50 percent of the sales are at three levels, value, normal and finest. Tesco has g eographically expanded it self to locate in six countries in Europe along with UK, the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland. It also operates in Asia, South Korea, Thailand, Malaysia, Japan and Taiwan Jordan is a constitutional monarchy which gained independence from the British in 1946. It consists of a well-educated population and the economy is supported through foreign loans, remittances and international aid.. The environmental audit revolves around the PESTLE factors, which are the political, economical, social, technological, legal and environmental elements. The PESTLE analysis would be used to develop strategies to help understand the environment that the company is entering and would operate in future. PESTLE analysis gives an overall picture of the feasibility of the venture and helps the organization in dealing with critical issues associated with entering an entirely new market. (Jewell, 2000) The political environment concerns the a ctivities of the state and trends in politics. Jordan is moving towards privatization, but still the government is in control. The mixture of privately and government-owned enterprises is called a mixed economy. The Business Freedom count of Jordan is 68.7 Business freedom is referred to the quantitative measure that assesses the overall regulatory burden to start, operate and close a business and depicts the regulatory efficiency of the government. The business freedom score is calculated between 0 to 100, 100 being the score of countries with the freest business environment. (The Heritage Foundation, 2011) Operating in a globalized environment with stores around the globe, Tesco's performance is highly influenced by the political and legislative conditions of the countries that it operates in, including the European Union (EU). (South, 2007) The economic variables play an important role in the environmental audit. The economic variables include the rate of growth of output and inc ome, the level of employment, the rate of inflation, the exchange rate and the balance of payments. (Jewell, 2000) Jordan has been progressing towards its economic infrastructure which has aided economic growth regardless of the challenging global economic environment. Levels of trade, fiscal, and investment freedom